Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Yellow Media Limited Reports Full Year and Fourth Quarter 2013 Financial Results

MONTREAL, QUEBEC -- (Marketwired) -- 02/13/14 -- Yellow Media Limited (TSX: Y)


--  2013 full year digital revenues grow 10.6% year-over-year to reach
    $406.3 million. For the fourth quarter of 2013, digital revenues
    represented 45.1% of total revenues

--  Strong adoption of our digital products and services, as advertiser
    penetration of the Yellow Pages 360 degrees Solution increases to 27.1%
    as at December 31, 2013 compared to 16.5% last year

--  2013 free cash flow grows 38.4% year-over-year to reach $274.6 million.
    The Company further strengthens its balance sheet, reducing net debt by
    32% to $533.1 million as at December 31, 2013 compared to $781.7 million
    last year

--  Company records net earnings of $176.5 million in 2013, which compares
    to net earnings of $182.4 million in 2012 before impairment charges and
    gain on settlement of debt

Yellow Media Limited (TSX: Y) (the "Company") releases full year and fourth quarter 2013 operational and financial results, ending the first phase of digital transformation with continued digital revenue growth and a strengthened capital structure. Yellow Media, a Canadian digital media company, champions the neighbourhood economy by fostering strong business relationships between local businesses and consumers.

Full Year 2013 Financial Results

Revenues in 2013 decreased to $971.8 million, representing a 12.3% year-over-year decline. On a comparable basis, when adjusting for the discontinuation of Canpages directories in 2012, revenues decreased by 10.7% versus last year's results. This decrease is primarily impacted by lower print revenues, as larger advertisers reduce their print advertising spend, alongside a lower advertiser count among smaller, low-spend advertisers.

Digital revenues in 2013 increased 10.6% to $406.3 million, as compared to $367.2 million last year. On a comparable basis, when adjusting for the discontinuation of Canpages directories in 2012, digital revenues grew 12.5% year-over-year. Growth in digital revenues is mainly due to the active migration of traditional media advertisers towards digital products and services and continued adoption of the Yellow Pages™ 360 degrees Solution across Yellow Pages Group's ("YPG's") sales channels.

As at December 31, 2013, the penetration of the Yellow Pages 360 degrees Solution offering among YPG's advertiser base, which is defined as advertisers who purchase three product categories or more, grew to 27.1%. This compares to 16.5% at the end of the same period last year.

Print revenues declined steadily to reach $565.4 million during 2013, decreasing 23.6% compared to the same period in 2012, as expected.

EBITDA declined to $416.1 million in 2013, as compared to $569.4 million the year prior. The EBITDA margin in 2013 decreased to 42.8% versus 51.4% in 2012, primarily due to revenue pressure, a change in product mix and investments required to advance the Company's digital transformation.

For the year ending December 31, 2013, the Company recorded net earnings of $176.5 million. This compares to a $2 billion net loss for the same period last year. In 2012, the Company recorded an impairment charge of $3.3 billion on its goodwill, and certain of its intangible assets and property, plant and equipment, as well as a gain on settlement of debt of $978.6 million pursuant to its recapitalization. When adjusting for the impairment charge and gain on settlement of debt, the Company recorded net earnings of $182.4 million in 2012. This decrease is due primarily to lower EBITDA, partly offset by lower financial charges, a lower depreciation and amortization expense, and lower restructuring and special charges.

For the year ending December 31, 2013, the Company recorded basic earnings per share of $6.34, which compares to basic earnings per share of $5.76 in 2012 before the impairment charge and gain on settlement of debt.

Free cash flow in 2013 increased to $274.6 million, which compares to $198.3 million in 2012. The increase in free cash flow is attributable to a favourable change in working capital, lower interest and income taxes paid and lower restructuring and special charges, partly offset by higher capital expenditures and lower EBITDA. Capital expenditures in 2013 totaled $66.1 million, up from $40.2 million last year.

"2013 marked the completion of Yellow Media's first phase of digital transformation, where we made significant investments to strengthen our digital foundation," said Ginette Maille, Chief Financial Officer of Yellow Media. "The Company will continue investing in its digital transformation in 2014, while also executing projects that improve the efficiency of the organization and support long-term profitability."

As at December 31, 2013, Yellow Media had reduced net debt to $533.1 million. This compares to $781.7 million of net debt as at December 31, 2012. In 2013, the Company repaid $153.4 million of its 9.25% Senior Secured Notes, exceeding the minimum mandatory requirement of $100 million.

Fourth Quarter 2013 Financial Results

Revenues for the fourth quarter ended December 31, 2013 decreased 10% to $238 million, compared to $264.4 million in the last quarter of 2012.

Digital revenues for the fourth quarter ended December 31, 2013 grew 7.7% to $107.4 million, compared to $99.7 million for the same period last year.

Digital revenues represented 45.1% of total revenues during the fourth quarter of 2013, up from 37.7% during the same period in 2012. Print revenues declined steadily to reach $130.6 million during the fourth quarter of 2013, decreasing 20.7% compared to the same period in 2012.

EBITDA declined to $91.3 million during the fourth quarter of 2013, compared to $141.7 million the year prior.

The EBITDA margin decreased to 38.3% for the fourth quarter of 2013, compared to 53.6% for the same period last year. The EBITDA margin for the fourth quarter of 2013 was impacted by revenue pressure, a change in product mix, investments required to advance the Company's digital transformation, and non-recurring provisions related to a legal dispute and sales tax assessments. The EBITDA margin for the fourth quarter of 2012 was impacted by a non-cash benefit related to the amendment of our employees' pension and post-retirement benefit plans. Excluding these non-recurring elements, the EBITDA margin for the fourth quarter of 2013 decreased to 41.2%, compared to 48.0% for the same period last year on the same basis.

For the quarter ending December 31, 2013, the Company recorded net earnings of $31 million. This compares to net earnings of $821.9 million for the same period last year. During the fourth quarter of 2012, the Company recorded a $300 million impairment charge related to certain of its intangible assets and property, plant and equipment, as well as a gain on settlement of debt of $994.9 million pursuant to its recapitalization. When adjusting for the impairment charge and gain on settlement of debt, the Company recorded net earnings of $27.6 million in the fourth quarter of 2012. The increase is due primarily to lower financial charges and a lower provision for income taxes, partly offset by lower EBITDA.

For the quarter ending December 31, 2013, the Company recorded basic earnings per share of $1.11, which compares to basic earnings per share of $0.83 for the quarter ending December 31, 2012 before the impairment charge and gain on settlement of debt.

Free cash flow for the fourth quarter of 2013 increased to $74.2 million, compared to $48 million last year. This increase results from a favorable change in working capital and lower interest and income taxes paid, partly offset by lower EBITDA.

Operational Update

"Yellow Media is strongly positioned to proceed with the second phase of its digital transformation, and will make targeted strategic investments throughout 2014 to promote long-term revenue growth and profitability," said Julien Billot, President and Chief Executive Officer of Yellow Media. "We are currently conducting a full business review to guide our efforts and investments in the short-to-medium term. Our end goal is to grow Yellow Media into a sustainable local digital media company by extending the reach of our brand, attracting new digital audiences, better addressing our advertisers' needs and investing in our employees."

Strengthening our Brand Image


--  The Company extended its advertising campaign to promote the download
    and use of the Yellow Pages mobile application, targeting over 260,000
    millennials across university campuses in Toronto, Vancouver and
    Montreal.

--  YPG launched Shop The Neighbourhood™ across the Greater Toronto Area,
    an event buoyed by a multimedia campaign to promote local shopping and
    support small businesses. This initiative took place on November 30,
    2013, attracting over 1,800 local businesses and offering over 2,000
    exclusive deals across our digital properties. The campaign also
    garnered support from all levels of government and local celebrities.

--  The Company will continue developing national and local advertising
    campaigns throughout 2014 to increase brand awareness with both
    consumers and advertisers, as well as underscore the brand's digital
    transformation.

Enhancing our Properties to Reach an Increasing Number of Canadian Shoppers


--  YPG launched a ShopWise iPad application, alongside a new version of its
    mobile application, to help Canadians shop more efficiently through a
    digitally-responsive e-flyer experience and easier-to-find geo-localized
    deals and savings.

--  The Company continued to deploy its Online Merchant Management tool,
    which improves the quality, completeness and relevance of its content by
    eliminating all duplicate and stale business listings.

--  In 2014, the Company will continue developing accurate, reliable and
    enriched local content to strengthen the user experience, improve user
    engagement and boost the relevance of its digital properties. The
    Company will invest in key traffic and distribution partnerships to
    further expand its partner eco-system and grow local audiences.

Providing Advertisers with Valuable Digital Marketing Products and Services


--  Mobile priority placement remains the Company's fastest growing digital
    product offering, with advertiser penetration having increased to 14.9%
    as at December 31, 2013 compared to 8% at the end of the same period in
    2012.

--  YPG extended its value proposition to local businesses by providing them
    with presence across social media. YPG is now able to use advertisers'
    business content, which includes location, contact information, websites
    and images, to automatically generate and update basic Facebook®
    business pages.

--  The Company will provide advertisers with more comprehensive social
    media advertising campaigns in 2014. A new digital display advertising
    service will also be launched, and existing products and services will
    be repackaged into new offerings to enhance advertisers' digital
    presence and stimulate ROI.

Attracting and Retaining a Growing Number of Advertisers


--  Total advertiser count was 276,000 as at December 31, 2013, compared to
    309,000 at the end of the same period last year.

--  Advertiser acquisition for the twelve month period ended December 31,
    2013 stood at 13,600. Advertiser acquisition improved slightly versus
    the twelve month period ended September 30, 2013, where 11,900 new
    advertisers were acquired.

--  The Company will continue rolling out its national acquisition strategy
    throughout 2014. New programs, processes and technologies will also be
    implemented to help its sales channels find and attract new advertisers,
    enhance lead nurturing, and improve conversions.

Investing in its Employees


--  The Company has aligned its workforce with the realities of its digital
    transformation, transferring resources from its legacy operations
    towards its digital platform. In 2013, the Company hired approximately
    200 professionals within the domains of information technology and
    digital media.

--  The Company will continue investing in its workforce and anticipates
    hiring an additional 200 professionals within information technology and
    digital media in 2014. The Company will also invest in developing a
    stronger digital culture, offering training programs, tools and
    resources to elevate digital literacy and promote change management
    across all facets of the organization.

Investor Conference Call

Yellow Media Limited will hold an analyst and media call at 1:00 p.m. (Eastern Time) on February 13, 2014 to discuss the full year and fourth quarter 2013 results. The call may be accessed by dialing (416) 340-2218 within the Toronto area, or 1 866 225-2055 outside of Toronto.

The call will be simultaneously webcast on the Company's website at http://www.ypg.com/en/investors/financial-reports/2013/quarterly-reports/fourth-quarter-webcast

The conference call will be archived in the Investors section of the site at www.ypg.com.

A playback of the call can also be accessed from February 13 to February 20, 2014 by dialing (905) 694-9451 within the Toronto area, or 1 800 408-3053 outside Toronto.

The conference passcode is 4993633.

About Yellow Media Limited

Yellow Media Limited (TSX: Y) is a Canadian digital and print media company, offering businesses comprehensive media solutions to meet their key marketing objectives and providing consumers with platforms to access reliable local business information. By helping local businesses foster stronger relationships with their consumers through its various media, the Company encourages the growth of thriving neighbourhood economies. Yellow Media holds some of Canada's leading local search properties and publications including YellowPages.ca™, Canada411.ca and RedFlagDeals.com™, the Yellow Pages, ShopWise and RedFlagDeals mobile applications and Yellow Pages™ print directories. Its mobile applications for finding local businesses and deals have been downloaded over 6.5 million times and its online destinations reach 7.3 million unique visitors monthly. Yellow Media is also a leader in national digital advertising through Mediative, a division of Yellow Pages Group devoted to digital marketing and performance media services for national-scale agencies and advertisers. For more information, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Company. These statements are forward-looking as they are based on our current expectations, as at February 13, 2014, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 6 of our February 13, 2014 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.


Financial Highlights
(in thousands of Canadian dollars - except share information)

----------------------------------------------------------------------------
                              For the three-month
                                    periods ended      For the years ended
                                     December 31,              December 31,
Yellow Media Limited              2013       2012         2013         2012
----------------------------------------------------------------------------

Revenues                      $237,951   $264,447     $971,761   $1,107,715
Income (loss) from
 operations                    $62,013  ($199,829)    $332,610  ($2,847,683)
Net earnings (loss)            $30,964   $821,850     $176,530  ($1,962,054)
Basic earnings (loss) per
 share attributable to
 common shareholders             $1.11     $29.24        $6.34      ($70.95)
Cash flow from operating
 activities                    $88,444    $61,749     $340,680     $238,573
----------------------------------------------------------------------------
EBITDA(1)                      $91,253   $141,677     $416,112     $569,380
EBITDA margin(1)                  38.3%      53.6%        42.8%        51.4%
----------------------------------------------------------------------------
Weighted average number of
 common shares outstanding  27,619,358 27,955,077   27,797,170   27,955,077
----------------------------------------------------------------------------

Non-IFRS Measures(1)

In order to provide a better understanding of the results, the Company uses the term EBITDA, defined as income from operations before depreciation and amortization, impairment of goodwill, intangible assets and property, plant and equipment, and restructuring and special charges. Management believes this measure is reflective of ongoing operations. This term is not a performance measure defined under IFRS. EBITDA does not have any standardized meaning and is therefore not likely to be comparable to similar measures used by other publicly traded companies. Management believes EBITDA to be an important measure.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...